What are the interesting research directions of behavioral finance based on fuse mechanism?

The fuse mechanism is a trading mechanism that limits the trading of stock prices beyond a certain range. Its main function is similar to the price limit, which is a violent price fluctuation unrelated to fundamentals. The purpose of suspension of trading is to increase the correct time of information dissemination and alleviate improper command or even flash collapse caused by wrong information or price changes. What are the classic papers about open circuit?

The stock price usually fluctuates around the value, but under special circumstances, the stock price fluctuation will be temporary. Usually, temporary abnormal fluctuations can be alleviated by mechanisms such as daily limit, the fuse of stability index and the fuse of stocks, so as to avoid affecting the normal operation of the market and prevent systemic risks. In a volatile market, factors such as signal distortion, signal loss, panic and signal disorder caused by high volatility, margin increase, liquidity pursuit and capital replenishment, the double helix of market liquidity and capital liquidity, and the interaction between futures and spot market prices will all increase.

The United States Securities and Exchange Commission (SEC) launched the world's first single-strand circuit breaker (SSCB) on June 20 10. In 20 13, the dynamic limit up/down (LULD) mechanism is introduced to replace the single stock circuit breaker. Circuit breakers give the market time to cool down and prevent the market from spiraling down due to panic. At that time, the United States introduced a "market-wide circuit breaker", which triggered a "trip" when the index moved more than a certain amount. Convicted and beheaded, the property was confiscated and the family became a handmaiden.

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